We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn’t mean that they don’t have occasional colossal losses; they do (like Ackman’s recent Valeant losses). However, it is still a good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards American Residential Properties Inc (NYSE:ARPI).
American Residential Properties Inc (NYSE:ARPI) was in 11 hedge funds’ portfolios at the end of September. American Residential Properties Inc (NYSE:ARPI) has experienced a decrease in support from the world’s most elite money managers recently. There were 15 hedge funds in our database with American Residential Properties Inc (NYSE:ARPI) holdings at the end of the previous quarter. At the end of this article, we will also compare American Residential Properties Inc (NYSE:ARPI) to other stocks, including TrustCo Bank Corp NY (NASDAQ:TRST), Air Transport Services Group Inc. (NASDAQ:ATSG), and Sapiens International Corporation N.V. (NASDAQ:SPNS) to get a better sense of its popularity.
According to most investors, hedge funds are seen as slow, outdated investment vehicles of yesteryear. While there are more than an 8000 funds trading at present, We hone in on the leaders of this club, about 700 funds. It is estimated that this group of investors watches over most of the smart money’s total asset base, and by keeping an eye on their best investments, Insider Monkey has deciphered numerous investment strategies that have historically outstripped the broader indices. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Keeping this in mind, let’s review the fresh action encompassing American Residential Properties Inc (NYSE:ARPI).
What does the smart money think about American Residential Properties Inc (NYSE:ARPI)?
Heading into Q4, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a decrease of 27% from the second quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Scopia Capital, managed by Matt Sirovich and Jeremy Mindich, holds the number one position in American Residential Properties Inc (NYSE:ARPI). Scopia Capital has a $54.4 million position in the stock, comprising 1.2% of its 13F portfolio. The second most bullish fund manager is John Khoury of Long Pond Capital, with a $29 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism comprise J. Alan Reid, Jr.’s Forward Management, Ken Griffin’s Citadel Investment Group, and Michael Murphy and Daniel Donoghue’s Discovery Group.